Ben Cropp Productions Pty Ltd v The Valuer General [1990] QLC 214

Re: Appeal against determination of Valuer-General - Douglas Shire Council - V89-490. Ben Cropp Productions Pty, Ltd. v.. The Valuer"'General DE C ISI O N (Hearing at Mossman) LAND COURT, BRISBANE 16th February, 1990 The land comprised in Lease 1 from the Douglas Shire ·Council over part of Lot 126 on Plan SR 868, Part Reserve 171, parish of Salisbury, is held by the appellant company and is situated at the tip of the entrance to Dickson Inlet at Port Douglas. The land is hatchet shaped comprising a total area of 1443 metres of which the handle takes up an area of 132 metres being filled and retained land providing access to the balance of the leased area which is below high water mark; part of this latter area - about 846 square metres - houses a wooden building constructed on piers which is used as a museum and a timber wharf area; the remainder, being about 465 square metres, was within the main dredged channel to Dickson Inlet and was suitable for mooring purposes. The valuation appealed against is in the sum of $85,000. The appellant's estimate of the unimproved value of the area is $33,650 which is founded on reasoning predominantly that certain areas of the lease have no value as structures could not be put upon them and generally that the determined value is too high when compared with values placed on marina land. Mr Cropp is of the opinion that the access strip has no [1990] QLC 214 -- 1 of 3 -- \ 2 value as it cannot be used for any purpose other than the purpose-for which it is used.. . . He admits that the area occupied by the museum has value but not the value applied to the area by the Valuer-General and he is of the opinion the area of the lease which was within the shipping channel has no value. It is agreed that the seaward area of this part of the lease is no longer safe for mooring purposes because· of silt arid tide flow as a result of the shipping channel being reshaped. Mr Cropp said that he has cancelled the mooring rights he possessed to this area. The area has remained within the lease and he has continued to use the other part of the area for mooring purposes. The reasons he gave for ascribing no value to the area are not valid reasons in my opinion. Mooring and wharfage areas are a valuable adjunct to landed areas or developments over water with which they are worked. I am of similar opinion in respect of the access strip. Evidence of the value of the land was given on behalf of the Valuer- General by Mr R.M. Bein, registered valuer in his employ. He did not write the original valuation. He said that were the area "solid" land the valuation would be made at a rate of $200 per square metre which was the base rate applied to "solid" land in the area based on sales. The sales he produced in support of his opinion were known to Mr Cropp. He agreed that the values applied to the sale lands were reasonable. In applying the sales to the subject land, Mr Bein valued the area of solid land - the access strip - at $200 per square metre. The area covered by the museum he valued at $50 per square metre or one-quarter of the base value and a like value is applied to the mooring area. An application of these values when applied to areas which were adjusted during the proceedings to conform with plans of the leased area would result in the following calculations - -- 2 of 3 -- 3 132 square metres @ $100 per square metre = 1311 square metres @ $50 per square metre = $13,200 $65,550 $78,750 The procedure which Mr Bein followed of applying one-quarter of "solid" land values to the land below high water mark was taken from a decision of this Court in the Maroochy Shire. The method appears to be a reasonable one to apply in the circumstances of the subject case. I adopt the method and the values applied save for the area within the channel. The whole of this area remains within the lease but only part is suitable for use. For the purposes of this valuation I think it reasonable to value the area of the channel (465 square metres) overall at a rate of $25 per square metre. Accordingly, on my calculation the valuation becomes - Access 132 square metres @ $100 per square metre Museum 846 square metres @ $ 50 per square metre Mooring 465 square metres @ $25 per square metre Or $67,000 in round figures. $13,200 $42,300 $11,625 $67,125 The appeal is allowed, the determination of the Valuer-General is set aside and the unimproved value of the subject land for the purposes of the Valuation of Land Act is determined in the sum of $67,000. -1 (Signed) D.M. White. ! Member of the Land Court -- 3 of 3 --